A Generalized Distance Function and the Analysis of Production Efficiency
AbstractA generalization of Shephardâs distance functions is proposed, extending the usefulness of distance functions in economic analysis. Applications to efficiency measurements and productivity analysis are presented. New indexes of productivity and technical, allocative, and scale efficiency are proposed and analyzed. Interpretation of these indexes in terms of ray-average cost, ray-average revenue, and cost-to-revenue ratio is discussed.
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Bibliographic InfoPaper provided by Wisconsin-Madison Agricultural and Applied Economics Department in its series Wisconsin-Madison Agricultural and Applied Economics Staff Papers with number 422.
Length: 43 pages
Date of creation: Feb 1999
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- Jean-Paul Chavas & Thomas L. Cox, 1999. "A Generalized Distance Function and the Analysis of Production Efficiency," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 294-318, October.
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